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A boss of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit pizza saturation while diversifying the company into poultry items has been removed after disagreements with its governing body.

Executive Change

The former CEO is departing after just two years in charge, and will be replaced on an temporary basis by the organization's operations head, Frampton, while Domino's looks for a permanent CEO.

Rennie, who was with the company for more than two decades, had sought to redirect Britain's biggest pizza food delivery firm towards fried chicken, stating recently there was not “massive growth” left in the UK's pizza market. He observed chicken was the fastest-growing menu item in the globe.

Board Friction

Sources suggest that there was tension between Rennie and the governance team over his strategy and management style, although Domino's announcement said he was leaving “through mutual consent”.

Recent Product Launch

In the autumn, the chain unveiled its chicken-focused product line – which the former chief described as a “major strategic shift” for the company – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.

While the business is still planning to expand it across its nearly 1,400 branches in the coming year as planned, it regards fried chicken as complementary to its primary pizza operations.

Leadership Statement

Ian Bull, the company chairman, said: “We are confident that there are a number of opportunities to boost expansion and performance improvement in our primary operations. We are concentrating on selecting the right chief executive to oversee the disciplined execution of that expansion plan.”

Industry Challenges

Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions dipped by one and a half percent in the latest quarter. In the summer, it warned that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the run-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in six-month income.

Rival chains are also facing challenges. Another major chain disclosed the shutting of dozens of outlets a recently, after the company behind its British operations fell into administration.

Wellness Efforts

Trying to keep up with customer preferences towards better nutrition, Domino's has introduced lower-calorie products, such as its Thin & Crispy range of bakes below 400 kcals as well as meat-free and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a personal has under 1,000 calories.

Acting Management

Nicola Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is believed that she is not seeking to assume the top job on a full-time basis.

She commented: “We have a multiple ongoing expansion and performance initiatives that we will be focused on executing at a rapid rate.”

She said these included ongoing development on the organization's logistics network and product development, and its loyalty scheme.

Domino's is also without a full-time CFO until March 16, when a new appointee starts from the Irish cider and beer maker C&C Group. In the meantime, Snow serves as acting financial officer.